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What is an ISF Bond?
What is an ISF Bond?
The Importer Security Filing (ISF) bond is a required financial guarantee for importers, ensuring that specific data points are submitted to U.S. Customs and Border Protection (CBP) before cargo is loaded onto an ocean vessel. The ISF bond fee varies depending on whether a company chooses a single transaction bond or a continuous bond, making it essential to evaluate the most cost-effective option for your business.
An ISF bond is customs form 301 bond classified under “Activity Code 16 – Importer Security Filing (ISF) Bond” by CBP and involves three key parties:
- Obligee: U.S. Customs and Border Protection (CBP)
- Principal: Importer of Record (IOR)
- Surety: The insurance company underwriting the bond
Types of ISF Bonds & Fees
The ISF bond fee depends on the type of bond:
- Single Transaction Bond: Covers one import shipment and includes a fee per filing.
- Continuous Bond: Covers all imports over a 12-month period, often reducing costs for frequent importers.
Some continuous customs bonds of other activity codes may also fulfill the ISF bonding requirement, including:
- Activity Code 1 – Import Bonds (The continuous import bond is the most common means importers use to meet the ISF bonding requirements).
- Activity Code 2 – Custodian of Bonded Merchandise
- Activity Code 3 – International Carrier
- Activity Code 4 – Foreign Trade Zone Operator
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